RBI Adds 19 Unauthorized Forex Trading Platforms to Alert List
On November 24, the Reserve Bank of India (RBI) updated its ‘Alert List’ of unauthorized forex trading platforms, adding 19 more entities to the list. This brings the total number of unauthorized platforms to 75. Among the newly added entities are FX SmartBull, Just Markets, and GoDo FX.
Unauthorized Entities Violate FEMA and ETP Regulations
According to the list, these entities are not authorized to engage in forex trading under the Foreign Exchange Management Act, 1999 (FEMA), nor are they permitted to operate electronic trading platforms (ETP) for forex transactions as per the Electronic Trading Platforms (Reserve Bank) Directions, 2018.
Entities Added to the Alert List
In addition to FX SmartBull, Just Markets, and GoDo FX, the following entities have also been included in the updated Alert List:
- Admiral Market
- BlackBull
- Easy Markets
- Enclave FX
- Finowiz Fintech
- FX SmartBull
- Fx Tray Market
- Forex4you
- Growing Capital Services
- HF Markets
- HYCM Capital Markets
- JGCFX
- PU Prime
- Real Gold Capital
- TNFX
- Ya Markets
- Gate Trade
RBI Statement on the Alert List
In a statement, the Reserve Bank clarified that the Alert List also includes names of entities, platforms, and websites that appear to promote unauthorized entities. However, it emphasized that the list is not exhaustive and cautioned against assuming that entities not appearing on the list are authorized by the RBI.
Full List of Unauthorized Forex Trading Platforms:
RBI Imposes Penalties on 3 Banks
Furthermore, on the same day, the RBI imposed penalties totaling ₹10.34 crore on three banks: Citibank, Bank of Baroda, and Indian Overseas Bank. The penalties were imposed for contravention of norms related to regulatory compliance. The RBI clarified that the penalties were not intended to pass judgment on the validity of any transactions or agreements between the banks and their customers. The Indian Overseas Bank was penalized ₹one crore, Citibank ₹5 crore, and the Bank of Baroda ₹4.34 crore.
Actions Against Co-operative Banks
In a separate action on November 23, the RBI imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance. The banks facing penalties are Shri Mahila Sewa Sahakari Bank Ltd, Porbandar Vibhagiya Nagarik Sahkari Bank Ltd, Sarvodaya Nagarik Sahakari Bank Ltd, The Khambhat Nagarik Sahakari Bank Ltd, and The Vejalpur Nagarik Sahakari Bank Ltd.
The penalties imposed by the Reserve Bank were ₹2.50 lakh on Shri Mahila Sewa Sahakari Bank Ltd., ₹2 lakh on Porbandar Vibhagiya Nagarik Sahkari Bank Ltd., ₹1 lakh on Sarvodaya Nagarik Sahakari Bank Ltd., ₹50,000 on The Khambhat Nagarik Sahakari Bank Ltd., and ₹25,000 on the Vejalpur Nagarik Sahakari Bank Ltd.
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